2017-01-19 Oversight Board Agenda Packet (Special)California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda
items, including attachments, which are presented to the Oversight Board in open session are available for
public inspection. They may be inspected during regular business hours in the Office of the City Clerk at
Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary, and on the City’s website at www.cityofvernon.org.
Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to
participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least
24 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
Agenda
Special Meeting of the
Oversight Board of the Successor Agency
to the Redevelopment Agency of the City of Vernon
Thursday, January 19, 2017, 4:00 p.m.
Council Chamber, City Hall
4305 Santa Fe Avenue
Vernon, California
Jonathan S. Fuhrman, Vice Chairperson
William J. Davis, Board Member
Mary Gallagher, Board Member David Vela, Board Member Kelly Nguyen, Board Member
Vacant, Board Member
Vacant, Board Member
CALL TO ORDER & FLAG SALUTE
CHANGES TO THE AGENDA
PUBLIC COMMENT - At this time the public is encouraged to address the Oversight Board on any matter
that is within the subject matter jurisdiction of the Board. The public will also be given a chance to comment on
matters which are on the posted agenda during the Board’s deliberation on those specific matters.
ELECTION
1. Election of Chair to serve until the next election
Recommendation:
A. Find that election of chairperson and vice chairperson does not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”),
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Agenda January 19, 2017
Page 2 of 3
because it constitutes an administrative activity that will not result in direct or indirect physical changes to the environment; and even if the adoption of the proposed resolution did constitute a
project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general
rule that CEQA only applies to projects that may have an effect on the environment; and
B. Elect one of its members as Chair.
MINUTES – TO BE RECEIVED AND FILED
2. Minutes of the Special Meeting of the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Vernon held January 26, 2016
ACTION ITEMS
3. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of
the City of Vernon, approving an agreement regarding Expenditure of Excess Bond Proceeds between the Successor Agency and the City of Vernon [2005 Tax Allocation Bonds]
Recommendation:
A. Find that adoption of the proposed resolution for approval of the Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds] is exempt under the
California Environmental Quality Act (“CEQA”) because it is a government fiscal activity that
will not result in any change to the environment and, therefore, is not a “project” as defined by
CEQA Guidelines Section 15378. Even assuming the activity were a “project”, it would be
exempt from CEQA review in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and
B. Adopt a resolution to approve an Agreement Regarding Expenditure of Excess Bond Proceeds
[2005 Tax Allocation Bonds], in substantially the same form as presented herewith.
C. Authorize Successor Agency staff, City Attorney and special counsel to take any necessary steps
to assure the provisions of said resolution are appropriately effectuated.
4. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon adopting, approving, and ratifying the Recognized Obligation Payment Schedule for the period July 1, 2017 through June 30, 2018, and approving certain related actions pursuant to California Health
& Safety Code Sections 34177(l), 34177(m) and 34180(g)
Recommendation: A. Find that adoption of the proposed resolution for approval of the Recognized Obligation
Payment Schedule for 2017-2018 (July 1, 2017 through June 30, 2018) is exempt under the
California Environmental Quality Act (“CEQA”) because it is a government fiscal activity that will not result in any change to the environment and, therefore, is not a “project” as defined by
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Agenda January 19, 2017
Page 3 of 3
CEQA Guidelines Section 15378. Even assuming the activity were a “project”, it would be exempt from CEQA review in accordance with CEQA Guidelines Section 15061(b)(3), the
general rule that CEQA only applies to projects that may have an effect on the environment; and
B. Adopt a resolution to approve the 2017-2018 annual Recognized Obligation Payment Schedule
(“ROPS”) in substantially the same form as presented herewith; and
C. Authorize Successor Agency staff, City Attorney and special counsel to take any necessary steps
to assure the provisions of said resolution are appropriately effectuated.
ORAL REPORTS
5. Cancellation of the Regular Meeting scheduled to be held on February 2, 2017, at 4:00 p.m.
6. Brief reports on activities, other brief announcements, and directives to staff.
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was
posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe
Avenue, Vernon, California, on the City’s website not less than 24 hours prior to the meeting set forth on this agenda. Dated this 17th day of January, 2017.
By: ________________________________
Maria E. Ayala, Secretary
-""s(
IREEEIVED
JAN t 2 20t/
|lITY ADMINISTRATION
STAFF REPORT Q r-vt"1
CITY CLERK DEPARTMENT
DATE:
TO:
FROM:
RE:
January 19,2Ol7
Honorable Members of the Oversight Board of the Successor Agency to the
Redevelopment Agency
Maria E. Ayala, City C'ierk \fr
Originatori Matthew Cebaflds/Deputy City Clerk
Election of Chair to serve until the next election
Recommendation
A. Find that election of Chair does not constitute a "project" pursuant to section 15378(bX2)
of the Guidelines to the California Environmental Quality Act (-CEQA"), because it
constirutes an administrative activity that will not result in direct or indirect physical
charges to the environment; and even if the adoption of the proposed resolution did
constitute a project, it would be exempt from CEQA in accordance with Section
15061(b)(3), the general rule that CEQA only applies to projects that may have an effect
on the environment; and
B. Elect one of its members as Chair.
Backsround
It is recommended that the Oversight Board of the Successor Agency to the Redevelopment
Agency conduct its election of a Chair pursuant to the Procedural Rules for Oversight Boards.
"The Chair and Vice Chair (if a Vice Chair is elected) shall be elected from among the members of
the Oversight Board.
The Oversight Board members may appoint such other officers (permanent, acting, or temporary) as
may be appropriate. The members may fix and determine the qualifications and duties of the officers.
The Chair and Vice Chair (if a Vice Chair is elected) shall be elected at the first meeting of the
Oversight Board. Should any of the offices of Chair or Vice Chair become vacant, the Oversight
Board shall elect a successor at the next regular meeting. The Chair and Vice Chair shall hold such
offices until successors are elected and assume office."
Page I of 2
Page 2 of 2
MINUTES OF THE SPECIAL MEETING OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
HELD TUESDAY, JANUARY 26, 2016, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT
4305 SANTA FE AVENUE, VERNON, CALIFORNIA AND VIA
TELECONFERENCE AT 3220 E. SIERRA MADRE BOULEVARD,
PASADENA, CALIFORNIA 91107
MEMBERS PRESENT: W. Michael McCormick, Jonathan S. Fuhrman (via
teleconference), David Vela, William J. Davis, and Mary
Gallagher
MEMBERS ABSENT: None.
The meeting was called to order at 4:14 p.m. by Chairperson McCormick who also led the flag
salute.
CHANGES TO THE AGENDA
Chairperson McCormick announced that there are no changes to the agenda.
PUBLIC COMMENT
Chairperson McCormick announced that this was the time allotted for public comment and
inquired whether anyone in the audience wished to address the Board. No one responded.
MINUTES – TO BE RECEIVED AN FILED
1. Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held September 3, 2015.
It was moved by Davis and seconded by Gallagher to receive and file the September 3, 2015 Minutes. Motion carried, 5-0.
ACTION ITEMS
2. Resolution No. OB – 41 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon adopting, approving, and ratifying the Recognized
Obligation Payment Schedule for the period July 1, 2016 through
June 30, 2017, and approving certain related actions pursuant to
California Health & Safety Code Sections 34177(l), 34177(m) and 34180(g).
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Minutes
January 26, 2016
Page 2 of 3
Recommendation:
A. Find that adoption of the proposed resolution for approval of the Recognized
Obligation Payment Schedule for 2016-2017 (July 1, 2016 through June 30, 2017) is exempt under the California Environmental Quality Act (“CEQA”), because it
is a government fiscal activity that will not result in any change to the
environment and therefore is not a “project” as defined by CEQA Guidelines
section 15378. Even assuming the activity were a “project,” it would be exempt
from CEQA review in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the
environment; and
B. Successor Agency staff recommends the Oversight Board adopt a resolution to
approve the annual 2016-2017 recognized obligation payment schedule (“ROPS”) in substantially the same form as presented and to authorize Successor Agency
staff and special counsel to negotiate with the Los Angeles County Auditor-
Controller and Department of Finance to assure the provisions of said resolution
are appropriately effectuated.
Successor Agency Staff Alex Kung conducted the oral report on the proposed and addressed the
Board’s inquiries.
It was moved by Gallagher and seconded by Vela to approve Resolution No. OB-41. Motion
carried, 5-0.
ORAL REPORTS
3. Cancellation of the Regular Meeting scheduled to be held on February 4, 2016, at
4:00 p.m.
Successor Agency Staff Alex Kung clarified that there is no need to hold the February 4, 2016
meeting because of the approval conducted today. If there is a need, a Special meeting will be
called.
4. Brief reports on activities, other brief announcements, and directives to staff.
Successor Agency Staff Alex reported on SB 107 which would move the Oversight Board to a
County Board in 2018.
With no further business, at 4:20 p.m., the meeting was adjourned.
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Minutes
January 26, 2016
Page 3 of 3
________________________
William J. Davis
Chairperson
ATTEST:
_________________________ Maria E. Ayala
Secretary
RECEIVED
JAN l2 20li
CIYCTTRKSOFTICE
REGEIVED
JAN 12 20fl
CITY ADMINISTRATION
STAFF REPORT (f,ue-tr
SUCCESSOR AGENCY FOR THE
FORMER VERNON REDEVELOPMENT AGENCY
DATE:
TO:
FROM:
R.E:
January 19,2017
Honorable Chairperson and Members of the Oversight Board of the
Successor Agency to the Former Vernon Redevelopment Agency
William Fox, Successor Agency StaffMe ^r"rdfOriginator: Iris Yang, Special Counsel to the Successor Agency
Agreement Regarding Expenditure ofExcess Bond Proceeds
[2005 Tax Allocation Bonds]
Recommendation
A. Find that adoption of the proposed resolution for approval of the Agreement Regarding
Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds] is exempt under the
Califomia Environmental Quality Act C'CEQA") because it is a govemment fiscal
activity that will not result in any change to the environment and, therefore, is not a
"project" as defined by CEQA Guidelines Section 15378. Even assuming the activity
were a "project", it would be exempt from CEQA review in accordance with CEQA
Guidelines Section 15061(bX3), the general rule that CEQA only applies to projects that
may have an effect on the environment; and
B. Adopt a resolution to approve an Agreement Regarding Expenditure of Excess Bond
Proceeds [2005 Tax Allocation Bonds], in substantially the same form as presented
herewith; and
C. Authorize Successor Agency staff, City Attomey and special counsel to take any
necessary steps to assue t}le provisions ofsaid resolution are appropriately effectuated.
Background
Health and Safety Code Section 34191.4(c) provides that after the Successor Agency to the
Redevelopment Agency has received a Finding of Completion from the state Deparunent of
Finance ("DOF"), the Successor Agency is authorized to use the bond proceeds from bonds
issued on or before December 31, 2010, in a manner consistent with the original bond covenants.
Further, the Successor Agency may designate the use of and commit indebtedness obligation
Page I of2
proceeds that were derived from indebtedness issued for redevelopment purposes after January l,
2011, and that remain available after the satisfaction of enforceable obligations that have been
approved on a Recognized Obligation Payment Schedule ('ROPS') and that are consistent with
the indebtedness obligation covenants (hereafter "Excess Bond Proceeds").
The Successor Agency received its Finding of Completion from DOF on April 17,2013.
The proposed Agreement Regarding Expenditure ofExcess Bond Proceeds [2005 Tax Allocation
Bonds] would authorize the Successor Agency to transfer Excess Bond Proceeds from the
Redevelopment Agency's Industrial Redevelopment Project Tax Allocation Bonds, Series 2005,
dated October 4, 2005 (the "2005 Bonds") to rhe City to be used in accordance with the bond
covenants.
The Agreement must be approved by the Oversight Board, and is subject to review by DOF.
DOF has approved similar agreements transferring bond proceeds from a Successor Agency to
the city. If the Agreement is approved by the city and Successor Agency, the Successor Agency
may list the Agreement as an enforceable obligation on the Recogrized Obligation Payment
Schedule C'ROPS').
The proposed Agreement Regarding Expendinre ofExcess Bond Proceeds between the City and
Successor Agency (which has been approved as to form by Special Counsel to the Successor
Agency) would permit all Excess Bond Proceeds from the 2005 Bonds to be transferred from the
Successor Agency to the City, which in tum must use the proceeds in accordance with the bond
covenants. As of June 30,2016, the Successor Agency had $25,685,004'74 in Excess Bond
Proceeds available from the 2005 Bonds.
Fiscal Imoact
Approval of the Agreement would allow the transfer of the remaining proceeds from the 2005
Tax Allocation Bond issuance to the City for the City to adminisrer. These agreements have
been approved by the Department of Finance for other successor agencies and their cities.
Attachment(s)
l. Resolution Approving the Agreement Regarding Expenditure ofExcess Bond Proceeds
[2005 Tax Allocation Bonds]
Page 2 of 2
RESOLUTION NO. OB-
A RESOI-,UTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGEiICY TO TTIE REDEVETOPMEIIT AGENCY OF THE
CITY OF VERNON, APPROVING AN AGREEMENI REGARDING
EXPEND I TTJRE OF EXCESS BOND PROCEEDS BETWEEN T]{E
SUCCESSOR AGENCY AND THE CITY OF VERNON
[2005 TAX ALLOCATTON BONDS ]
WHEREAS. pursuant to Assembly Bill X1 26, enacted on June 28,
2011-, AsseflJcly Bill L484, enacted on .fune 27, 20L2, and other
subsequenE legislation (colIectiveIy, the 'Dissolution Law"), the
RedevelopmenE. Agency of Ehe City of Vernon ( "Redevelopmenc Agency" ) was
dissolved on February L, 2Ol2; and
WHEREAS, pursuant to Health and Safety Code Section 341-73,
the City of vernon elecEed to serve as the Successor Agency to the
Redevelopment Agency and pursuanE to Health and SafeEy Code SecEion
34L73(gl , the successor Agency is a separate public enEity from the
City; and
WHEREAS, pursuant to Health and Safety Code Section
34L97.4 (c) , af t.er a successor agency has received a finding of
completion from the sEace Department of Finance ("DOF"), a successor
agency. with the approval of its owersight board, may 1is! enforceable
obligations Eo expend excess bond proceeds on its Recogrnized Obligation
Pa)ment Schedule ('RoPs"), so long as such expenditures are consistent.
with the bond cowenanEs; and
WHEREAS, the Successor Agency receiwed a Finding of
Completion from DOF on April L7, 2Ol3; and
WHEREAS, the Successor Agency has excess bond proceeds from
the RedevelopmenE Agency's fndustrial Redevelopment Project Tax
Allocation Bonds, Series 2005 ("2005 Bonds"); and
WHEREAS, the Successor Agency and City desire to have a1f the
excess bond proceeds from Ehe 2005 Bonds held by the Successor Agency
Eransferred to the Cicy to be expended in a manner consistent wit.h the
applicable bond covenants .
NOW, THEREFORE, BE IT RESOLVED BY THE OVERS IGHT BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON AS
FOLLOWS:
SECTfON 1: The Oversight Board of the Successor Agency to
the Redewelopment Agency of the City of Vernon hereby finds and
determines tshat Ehe above recitals are true and correcE.
SECTIoN 2: The oversight Board of the Successor Agency to
the Redevelopment. Agency of the City of Vernon hereby finds thaE Ehis
action is exempt under the California Environmentsal Quality Act
("CEQA") because it is a government fiscal activiEy that will not.
result in any change tso the environment and, therefore, is not a
"project" as defined by CEQA Guidelines section 15378. Even assuming
the actsivity were a "project", it would be exempE from CEQA review in
accordance with CEQA Guidelines section 1,5051(b) (3). the general rule
that CEQA only applies to projecEs thats may have an effect on E.he
environment.
SECTfON 3: The Oversights Board of the Successor Agency to
Ehe Redevelopment Agency of the City of Vernon hereby approves the
Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax
Allocatsion Bondsl , in su]:stantially tshe same form as tshe copy which is
aEtached hereto as Exhibit A.
SECTION 4: Subjects to the condiE.ions set forth in SecEion
4, below, the successor Agency
execute the Agreement Regarding
is hereby auEhorized and direcEed Eo
Expenditure of Excess Bond Proceeds
2
[2005 Tax AllocaE.ion Bonds], subject to any minor, technical and
clarifying cbanges as may be approved by the Successor Agency Counsel .
The Successor Agency is further authorized and directed to take 6uch
actions aE are nece€rsary and appropriate to implement said Agreement on
behalf of Ehe Succes6or Agency.
SECTION 5:The approvals and authorizations seE. fort.h in
SecEione 3 and 4 of thie ReBolut.ion are conditioned upon approval by
DOF of the OverEight Board,a action under this ReaoluE.ion E,o approve
the Agreement. Regarding E:q>enditure of Excess Bond proceed8, or if DOF
does not. requests a review within five bueiness daye. the Oversights
Board's action becomes effective in accordance with Eaid Section
34179 (h) .
SECTION 6: The SecreEary of the Over8ight Board, sha11
cert.ify t.o the paasage, approval and adoption of this reaolution, and
Ehe Secretary shall cause this reaolution and the Secretary, s
cerEification to be properly filed.
APPROVED Al{D ADOPTED this 17th day of ,January, 201?.
Name:
Title: Chairman / Vice Chairman
ATTEST :
Maria E, Ayala, Secretary
BesE. Best & Krieger LLp,
Special Cor:nse1 to Ehe Oversight Board
Iris Yang, Esq(
3
STATE OF CAI,IFORNIA )) ss
COI'NTY OF I,OS ANGELES )
I, Maria E. Aya1a, acEing on behalf of the OversighE Board as its
Secretary, do hereby certify thaE the foregoing ResoluEion, being
Resolution No. oB- , was duly passed, approved and adopted by the
Oversight Board of Ehe Successor Agency t,o the Redevelopment Agency of
the City of Vernon ac a special meeting of the oversighE Board duly
held on Thursday, January 19, 20L7, and thereafler was duly sigrned by
the Chairman or vice Chairman of t.he oversight Board.
ExecuE.ed this day of January, 2o!7, aE Vernon, California.
Maria E. Aya1a, Secretary
t D tlft! ,
4
Exhibit A
AGREEMENT REGARDING
EXPENDITURE OF EXCESS BOND PROCEEDS
[2005 Tax Allocation Bondsl
AGREEMENT REGARDING
EXPENDITURE OF EXCESS BOND PROCEEDS
[2005 Tax Allocation Bondsl
This Agreement Regarding Expendirure of Excess Bond Proceeds ("Agreement") is
entered into this _ day of 2011 , by and between the Successor Agency to the
Redevelopment Agency of the City of Vemon ("successor Agency") and the City of Vemon, a
charter city C'City). The Successor Agency and the Ciry are hereinafter collectively referred to
as the "Parties."
RECITALS
A. Pursuant to the Community Redevelopment Law (Health & Saf. Code $33000 et
a/.) ("CRL"), the former Redevelopment Agency of the City of Vernon ("Redevelopment
Agency") was responsble for implementing the Redevelopment Plan for the Industrial Project
Area (ihe ,.Redevelopment Project Area"), originally adopted by the city council of the city of
Vemon ("City Council").
B. Pursuant to an Indenture of Trust Agreement, dated October 1, 2005, executed by
and between the Redevelopment Agency and the Bank of New York Trust Company, N'A', as
Trustee, (the ..Trust Agreements"), the Redevelopment Agency issued Tax Allocation Bonds as
more fully described below (collectively, the "2005 Bonds").
C. Following dissolution of the Redevelopment Agency on February 1' 2012,
pusuant to Assembly Bill lX 26, the City elected to serve as the Successor Agency to the
Redevelopment Agency. Pursuant to Health and Safety code Section 3a173(g), the Successor
Agency is a separate public entity from the City.
D. Health and Safety code Section 34191.4(c) provides that once the Successor
Agency has been issued a Finding of Completion by the Califomia Department of Finance
C,bOF), the Successor Agency is authorized to use bond proceeds from bonds issued on or
before December 31, 2010, in a mamer consistent with the original bond covenants. Further, the
Successor Agency may designate the use of and commit indebtedness obligation proceeds that
were derived from indebtedness issued for redevelopment purposes after January 1,2011, and
that remain available after the satisfaction of enforceable obligations that have been approved on
a Recognized Obligation Payment Schedule ('ROPS) and that are consistent with the
indebtedness obligation covenants (hereafter "Excess Bond Proceeds").
E. The DOF issued a Finding of Completion to the Successor Agency on April 17'
2013.
F. Health and Safety Code Section 34191.4(c) firther provides that the expenditure
ofExcess Bond Proceeds must be listed separately on the applicable ROPS.
Agt to Expend Excess Bond Proceeds [2005 Bonds]
8r r76 00003\29484102 I
I
G. The Parties desire to enter into this Agreement to use the Excess Bond Proceeds
for the purposes identified in and consistent with the covenants contained in the Trust Agreement
and related documents (the "Bond Covenants") and the requirements of the CRL, and to provide
for the Successor Agency to transfer the Excess Bond Proceeds to the City to be used for such
purposes.
H. The execution of this Agreement was approved in a public meeting of the City
Council and the Successor Agency on 2017.
I. This Agreement was approved by the Oversight Board for the Successor Agency
in a public meeting on 20t7.
J. The Oversight Board's action to approve this Agreement was submiued to DOF
plrrsrxurr to Health and Safety Code Section 34179Qr,), and DOF approved this Agreement on
2017.
NOW, THEREf,'ORE, in consideration of the mutual covenants, conditions and
promises herein contained, the Parties hereby agree as follows:
1. Recitals. The Recitals above are true and conect and are incorporated herein by
reference.
2. Term. The term of this Agleement shall commence on the Effective Date, and
shall continue in effect until the date that all Excess Bond Proceeds are expended in accordance
with the requirements of this Agreement.
3. 2005 Bonds. The following bonds were issued by the Redevelopment Agency:
Redevelopment Agency of the City of Vemon Industrial Redevelopment Project Tax Allocation
Bonds, Series 2005, in the amount of $49,420,000, dated October 4,2005, to be used to finance
various public improvements within or benefiting the Redevelopment Project Area. As of June
30,2016,the Successor Agency had s25,685,004.7 4 in Excess Bond Proceeds available from the
2005 Bonds.
4. Use of Excess Bond Proceeds. The City agrees that it shall use the Excess Bond
Proceeds available from the 2005 Bonds identified above solely for the purposes identified in
Recital G., above, or for other projects consistent with the 2005 Bond Covenants and the
provisions of the CRL, as may be amended from time to time, that apply to the expenditure of
such Excess Bond Proceeds.
5. Transmittal of Excess Bond Proceeds. Upon the Effective Date, the Successor
Agency shall transfer the Excess Bond Proceeds (including any interest accrued thereon as of the
Effective Date) to the City, and the City shall deposit such funds into a separate 2005 Excess
Bond Proceeds Accognt for the City's use in accordance with the terms, conditions and purposes
set forth in this Agreement.
Agt to Expend Excess Bond Proceeds [2005 Bonds]
8l 176 00003\294E4102 r
6. Project Aporovals: Environmental Review. This Agreement is not intended to
limit in any mamer the discretion of the City in corurection with the issuance of approvals and
entitlements for the projects described in this Agleement, nor to avoid legally required processes
attendant to project approval, including, without limitation, the undertaking and completion of
any required environmental review pursuant to the Califomia Environmental Quality Act and the
National Environmental Protection Act, as applicable, and the review and approval of plans and
specifications.
7- Severability. If any term, provision, covenant, or condition set forth in this
Agreement is held by the final judgment ofa court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force
and effect to the extent that the basic intent of the Parties as expressed herein can be
accomplished. ln addition, the Parties shall cooperate in good faith in an effort to amend or
modifi this Agreement in a manner such that the purpose ofany invalidated or voided provision,
covenant or condition can be accomplished to the maximum extent legally permissible.
8. No Third-Partv Beneficiariesl Assiexments' Nothing in this Agreement is
intended to create any third-party beneficiaries to this Agreement, and no person or entity other
than the Successor Agency and ttre City, and the permitted successors and assigns of either of
them, shall be authorized to enforce the provisions ofthis Agreement'
g. Further Assurances. Each Party aglees to execute, acknowledge and deliver all
additional documents and instruments, and to take such other actions as may be reasonably
necessary to carry out the intent of the transactions contemplated by this Agreement.
10. Goveming Law. This Agreement shall be govemed by and construed in
accordance with the laws of the State of California.
11. counteroarts. This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which shall constitute but one and the same instrument.
12. Amendment. This Agreement may be modified or amended, in whole or in pan,
only by an instrument in wdting, executed by the Parties'
13. Effective Date. This Agreement shall be effective when signed by both parties,
and approved by the Oversight Board and DOF.
Agt to Expend Excess Bond Proceeds [2005 Bonds]
8 r r 76.00003\29484102 I
-r-
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
written above.
CITY OF VERNON SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
City Administrator Chairperson
Attest:Attest:
Maria E. Ayal4 City Clerk
Approved as to Form:
Agt to Expend Excess Bond Proceeds [2005 Bonds]
t I 176 00003\294t4 I 02 I
Secretary
Approved as to Form:
Brian Byun, Deputy City Attomey Legal Counsel
-4-
c\1\ $tI$l$orrtce
RECEIVED
JAN t 2 20r'
STAFF REPORT CITY
Ct(SUCCESSOR AGENCY FOR THE
FORMER VERNON REDEVELOPMENT AGENCY
ADMINISTRATION
t- (bt1
DATE:
TO:
FROM:
R.E:
January 19,2017
Honorable Chairperson and Members of the Oversight Boird of the
Successor Agency
Wiltiam Fox, Successor Agency StaffM "^O".NTOriginator: Diana Figueroa, Administrative Analyst
Recognized Obligation Payment Schedule for 2017-2018 Annual (July 1' 2017
through June 30' 2018)
Recommendation
A. Find that adoption of the proposed resolution for approval of the Recogrrized Obligation
Payment Schedule for 2017 -2018 (July l, 2017 through June 30, 2018) is exempt under
the Califomia Environmental Quality Act ('CEQA) because it is a government fiscal
activity that will not result in any change to the environment and, therefore, is not a
..projett,' as defined by CEQA Guidelines Section 15378. Even assuming the activity
were a ..project", it would be exempt from cEQA review in accordance with CEQA
Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that
may have an effect on t}te environment; and
B. Adopt a resolution to approve the 2017-2018 annual Recognized Obligation Payment
Schedule C'ROPS) in substantially the same form as presented herewith; and
C. Authorize Successor Agency staff, City Attomey, and special counsel to take any
necessary steps to assure the provisions of said resolution are appropriately effectuated.
Background
Pusuant to Senate Bill 107, the Successor Agency must submit an annual Recogrized
Obligation Payment Schedule by February l't of each year to the Los Angeles County Auditor-
Controller and Califomia Depanment of Finance. Attached for the Oversight Board's approval
is the RoPS for fiscal year July 1,2017 through June 30,2018. The ROPS was approved by the
Successor Agency at its January l7 ,2017 meeting.
Page I of2
Fiscal Imoact
The Agency is requesting s5,476,717 in Redevelopment Property Tax Trust Fund monies from
the De.-partrnent oi Fin-." to pay its enforceable obligations. In addition, the Agency is
requesting that it be allowed to transfer the remaining bond proceeds from the 2005 Tax
Allocation Bond issuance to the City for the City to administer.
Attachment(s)
I ) Resolution Approving the 20 I 7-20 I 8 Annual ROPS Schedule
Page2 of2
RESOLUTION NO. OB-
A RESOLUTION OF THE OVERS IGHT BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON ADOPTING, APPROVING, AND RATIFYING
TI{E RECOGNIZED OBLIGATION PAYMENT SCHEDI'LE FOR THE
PERIOD JIILY 1, 2017 THROUGH JI'NE 30, 2018, AND
APPROVING CERTAIN REI,ATED ACTIONS PI'RSUAIiIT TO
CALIFORNIA HEALTH & SAFETY CODE SECTIONS 34177(1),
34L77 (m) AND 34180 (g)
WHEREAS, on January f9, 20L7, the OversighE Board of t.he
Successor Agency tso the Redevelopmen! Agency to the CiEy of Vernon
("Oversight Board" ) considered the adopEion, approval and ratification
of the Recognized Obligation PalmenE. Schedule of tshe Successor Agency
Eo t.he former Vernon RedevelopmenE. Agency for the reporting period of
,July 1, 2017 t.hrough ,June 30, 2018, ("ROPS" ) using Ehe electronic-
version of the recognized obligation payments schedule provided to the
Successor Agency by the Department of Finance (..Finance,, ) ; and
WHEREAS, on January L9, 2017, the OversighE. Board approved
the ROPS with tshe express auEhorization to allo$, staff of Che
Successor Agency Eo the former Vernon Redevelopments Agency (,.Successor
Agency" ) to take any steps necessary t.o ensure EhaE the prior period
adjust.ments are accurately reflected and that there is sufficient
funding allocaE.ed to make payments on the enforceable obligat.ions of
the former Vernon RedevelopmenE Agency, including the Series 2O05 and
2 011 bonds; and
WHEREAS, in furEherance of the foregoing reciEals, E.he
Oversight Board desires to adopt, approve, and ratify the ROPS
attached hereto and j.nst.ruct staff and special counsel to the
Successor Agency to negotiate witsh the Los Angeles CounEy Audit.or-
Controller and Finance, as and if appropriate, following the
,fanuary 19, 20L7 , meeEing of the Oversight Board, to assure the goals
and desires of the Oversight Board in Ehis resolut.ion are carried out.
NOW, THEREFORE, BE IT RESOI,VED BY THE OVERSTGI{T BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON AS
FOLLOWS :
SECTION 1: The Oversight Board of the Successor Agency to
the Redevelopment Agency of the City of Vernon hereby finds and
determines E.hat tshe above recitals are Erue and correct.
SECTION 2: The Owersight Board of t.he Successor Agency to
the Redevelopment Agency of E.he City of Ve rnon hereby finds Ehat this
action is exempt under the California Environmental euality Act.
("CEQA") because it is a government. fiscal actiwity that wiLl noc
result in any change Eo the environment and, therefore, is not a
"project" as defined by CEQA Guidelines Section L5378. Even assuming
t.he activity were a "project,,, it would be exempt from CEQA review in
accordance with CEQA Guidelines Section 1508L(b) (3), the general rule
Ehat CEQA only applies E.o projects t.hat. may have an effect on E.he
enwironment.
SECTION 3: The Oversight Board of the Successor Agency tso
the Redewelopment Agency of the City of Vernon hereby adopts,
approves, and ratifies t.he ROPS, in the form atE.ached to t.his
Resolution as Exhibit A, pursuant Eo Catifornia Health & SafeE.y Code
sections 34L77 (ll , 34177 (m) , and 34180 (g) .
SECTfON 4: Pursuant Eo California Health & Safety Code
section 34179(h) , Finance may review an Oversight Board action. An
action of t.he OversighE. Board shall become effective five business d.ays
after notice in the manner specified by Finance is provided unless
Finance requests review. Successor Agency st.aff member, William Fox,
c/o Vernon City IiaI1, 43OS SanEa Fe Avenue, Vernon, CA 90058 Telephone
(323) 583-8811 Ext.ension 849 (wfox@ci.vernon.ca.us) is desigmated as
Ehe official for noEice of review by Finance. ExcepE as othen ise
provided in California Health & SafeEy Code sec!ion 341?9(h), in the
event Finance requegE.s a review of a given oversight board acEion,
Finance shall have 40 dayE from t.he date of Ehis request to approve the
Oversight Board acEion or reEurn it E.o the Owersight. Board for
recons iderat ion; the owersight Board sha11 resubmiE the modified action
for Finance approval and t.he modified oversighE Board action shaII not.
become effective until approved by Finance,
SECTION 5: The Secretary of the Oversight Board, shall
cert.ify to the passage, approval and adopEion of chis resolut.ion, and
t.he SecreEary shalI cauEe lhis resoluE.ion and the SecreE.ary, s
cert.ificaEion to be properly filed.
APPROVED AI\ID ADOPTED E.his 19th day of ,January, 2017.
Name :
TiEle: Chairman / Vice Chairman
ATTEST:
Maria E. Aya1a,
APPROVED AS TO
Secret.ary
FORM:
Iris Yang, Es{.
Best Best & KriSpecial Counsel Eo
-3-
STATE OF CATI FORNIA
COIJNTY OF LOS ANGELES
I, Maria E. Aya1a, acting on behalf of t.he Oversight Board as its
Secretary, do hereby certify E.haE. t.he foregoing Resolution, being
Resolution No. OB- , was duly passed, approved and adopted by the
Oversight Board of the Successor Agency to the Redevelopment Agency of
the City of Vernon at a special meeting of Ehe Oversight Board duty
held on Thursday, ,January 1-9, 20L7 , and thereafEer was duty signed by
the Chairman or Vice Chairman of the Oversight Board.
ExecuEed this day of ,fanuary, 201,7, aE Vernon, California.
Maria E. Aya1a, Secret.ary
(SEAL)
ss
4
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